XML 91 R15.htm IDEA: XBRL DOCUMENT
v3.20.1

Investment in OC-BVI | 12 Months Ended
--- | ---
Dec. 31, 2019
Investment in OC-BVI |
Investment in OC-BVI | 9. Investment in OC-BVI The Company owns 50% of the outstanding voting common shares and a 43.53% equity interest in the profits of Ocean Conversion (BVI) Ltd. (“OC-BVI”). The Company also owns certain profit-sharing rights in OC-BVI that raise its effective interest in the profits of OC-BVI to approximately 45%. Pursuant to a management services agreement, OC-BVI pays the Company monthly fees for certain engineering and administrative services. OC-BVI’s sole customer is the Ministry of Communications and Works of the Government of the British Virgin Islands (the “Ministry”) to which it sells bulk water. The Company’s equity investment in OC-BVI amounted to $1,903,602 and $2,584,987 as of December 31, 2019 and December 31, 2018, respectively. Summarized financial information for OC-BVI is as follows:
|  | December 31,
|  | 2019 |  | 2018
Current assets |  | $ | 1,151,398 |  | $ | 2,286,179
Non-current assets |  |  | 3,446,198 |  |  | 3,859,310
Total assets |  | $ | 4,597,596 |  | $ | 6,145,489
|  | December 31,
|  | 2019 |  | 2018
Current liabilities |  | $ | 156,040 |  | $ | 132,005
Non-current liabilities |  |  | 684,450 |  |  | 1,048,950
Total liabilities |  | $ | 840,490 |  | $ | 1,180,955
|  | Year Ended December 31,
|  | 2019 |  | 2018
Revenue |  | $ | 3,146,550 |  | $ | 2,845,211
Cost of revenue |  |  | 2,156,460 |  |  | 1,348,046
Gross profit |  |  | 990,090 |  |  | 1,497,165
General and administrative expenses |  |  | 781,677 |  |  | 707,034
Gain on long-lived asset disposition |  |  | 1,000 |  |  | —
Income from operations |  |  | 209,413 |  |  | 790,131
Other income (expense), net |  |  | (32,341) |  |  | 3,393,271
Net income |  |  | 177,072 |  |  | 4,183,402
Income attributable to non-controlling interests |  |  | 74,233 |  |  | 52,275
Net income attributable to controlling interests |  | $ | 102,839 |  | $ | 4,131,127
A reconciliation of the beginning and ending balances for the investment in OC-BVI for the year ended December 31, 2019:
Balance as of December 31, 2018 |  | $ | 2,584,987
Profit-sharing and equity from earnings of OC-BVI |  |  | 60,965
Distributions received from OC-BVI |  |  | (742,350)
Balance as of December 31, 2019 |  | $ | 1,903,602
The Company recognized $44,765 and $1,798,280 in earnings from its equity investment in OC-BVI for the years ended December 31, 2019 and 2018, respectively. The Company recognized $16,200 and $654,075 in profit-sharing income from its profit-sharing agreement with OC-BVI for the years ended December 31, 2019 and 2018, respectively. For the years ended December 31, 2019 and 2018, the Company recognized $382,653 and $445,188, respectively, in revenues from its management services agreement with OC-BVI. The Company also recognized approximately $710,000 in revenues for the year ended December 31, 2018 for the refurbishment of OC-BVI’s Bar Bay plant. Amounts payable by OC-BVI to the Company were $10,808 and $46,746 as of December 31, 2019 and 2018, respectively. Resolution of Baughers Bay Litigation Through March 2010, OC-BVI supplied water to the BVI government from a plant located at Baughers Bay, Tortola, under the terms of a water supply agreement dated May 1990 (the “1990 Agreement”) with an initial seven-year term that expired in May 1999. The 1990 Agreement provided that such agreement would automatically be extended for another seven-year term unless the BVI government provided notice, at least eight months prior to such expiration, of its decision to purchase the plant from OC-BVI at the agreed upon amount under the 1990 Agreement of approximately $1.42 million. In correspondence between the parties from late 1998 through early 2000, the BVI government indicated that it intended to purchase the plant but would be amenable to negotiating a new water supply agreement and that it considered the 1990 Agreement to be in force on a monthly basis until negotiations between the BVI government and OC-BVI were concluded. OC-BVI continued to supply water from the plant and expended approximately $4.7 million between 1995 and 2003 to significantly expand the production capacity of the plant beyond that contemplated in the 1990 Agreement. In 2006, the BVI government took the position that the seven-year extension of the 1990 Agreement had been completed and that it was entitled to ownership of the Baughers Bay plant and during 2007, the BVI government-initiated litigation seeking ownership of the Baughers Bay plant. OC-BVI counterclaimed that it was entitled to continued possession and operation of the Baughers Bay plant until the BVI government paid OC-BVI approximately $4.7 million, which OC-BVI believed represented the value of the Baughers Bay plant at its expanded production capacity. As a result of the final ruling made by the Appellate Court on this litigation in 2009, the BVI Government was awarded ownership of the Baughers Bay plant but OC-BVI was awarded compensation for improvements made to the plant in the amount equal to the difference between (i) the value of the Baughers Bay plant at the date OC-BVI transferred possession of the plant to the BVI government and (ii) $1.42 million (the purchase price for the Baughers Bay plant under the 1990 Agreement). In August 2018, OC-BVI and the BVI government entered into a settlement agreement for the Baughers Bay plant litigation with an agreed upon value for the plant of $4,432,834, which resulted in a net payment (i.e. after legal and other expenses) to OC-BVI in September 2018 of $4,271,409. Such amount is included in other income, net in OC-BVI’s 2018 consolidated results of operations.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration